Little Falls transcript. [volume] (Little Falls, Morrison County, Minn.) 1876-1894, 1887-02-04
From the Pioneer Press

From the Pioneer Press,
A Farmer writing from Alexandria
scornfully disputes The position of our
Ada correspondents vino was afraid tha'
reducing the maximum rate Of Interest
to s per cent. az proposed IN D"nne,lv'*
usury bill, would be the means OF driving
capita! from The fr"nlitr rounllrs OF i've
state. "Ihat" he says, is HE Old cry
Of sharks anil cutthroats. Money. has
been more plenty in this part Of trr stale
since interest was cut down tiom - 10
10 per cen, than it was hef,rr.' He
thinks the Ada writer is either a money
loaner or in their pny, a>d has not heard
farmer or any working III l." but WAC
says Down with intereS, ;'aud he ,iHAs
Z per cent is interest enough AMI I q
the penalty for taking more, directly Or
inc !rsctly> canrot be too sever, Now
we presume this is q fai. sam la 0! iAe
views Of the vast ma iority Ct farmtrs an.
other money Borrowers thrnuSholl 1h"
state--even IN those portions where
there il least capital where III" farmers
are generally ne" settlers without ,ue us
and often COMPELLED to- hocrp" money at
even more than HE hi ehess icsfl rates to
pay for the lum her tnat go-.s jn'o their
houses ard for their agricultural machi.
merry. They assume that all that is
necessary to enable Them to get money
at Or 6 per cent is to pass law fixing
the maximum rate 1T that fgu.e; that
those who propose to 10 this are their
friends, and those WHO hazard HE suy
resllnn that lis only effect would bc Ia
make it impossible for them TO borrow
money al all are their enemies in league
witt, sharks and cutlhroal> TO Cypress
them. Now 'he prevailing bank rate Of
interest at st Paul is $ per on Hrscla:s
commercial paper. Concerns who's.
capital amounts to hundreds OF tl'nnS
Ande of tioil;us, and whose tie hts Gu n;H
amount 10 II fifth "f their capital, az"
obliged to Jay that rate of jneHs;
though they have the entire n,ulr,>
markets of the world prac,lcaIy al t''"u
disposal: Occasionlly, when there is
little letnand for money, they can sell
their paper at lower rates at the East,
but they cannot borrow money at he
local banks usually for a less rate than
Ia;
which FIRST class CONNER ial paper sells
in St, Paul and Minneapolis 1t seems
hardly likely that the poor frontier
settler, with no security to- offer except
q mortgage on his farm or q chatel
mortgage on his crops and personal
properly, could borrow money at the
same rate of Interest. But ii The bill
fixing the maximum rate OF interest at s
per cent is generally demanded by the
farmers--ii taey insist on regarding
everybody rs an enemy to their Interests
who thinks The re>ul, would lie 10 maxi
it Impossible for those whose farms are
heavily mor,gaged at 10 per cen, in er-
est to renew the leans IA, 8 per cent and
thus ruin them by forced ioreclosures
then by all means let the hill pass, so
that they may find by experience whtlh
er i, is as beneficial 10 their interests as
they believe ii, to be. If within two
years FROM ,hissdate they are not howl
ing for repeal otthis law more luri.
ously than they are now clsnsoring for
its enactment. we shall be greatly mis-
taken. We trust every member Of the
legislature wilt vale for Mr.. Donnelly's
= usnry bill. A. M